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The Macroeconomic Impact of Increasing U.S. LNG Exports
Oxford Economics and The Center for Energy Studies at Rice University’s Baker Institute were commissioned by Leonardo Technologies, Inc. on behalf of the Department of Energy to undertake a scenario‐based assessment of the macroeconomic impact of alternative levels of U.S. LNG exports under a range of assumptions concerning U.S. resource endowment, U.S. gas demand, and the international market environment. The report finds that the overall macroeconomic impacts of higher LNG exports are marginally positive, a result that is robust to alternative assumptions for the U.S. natural gas market. Although some energy‐intensive, trade‐exposed industries such as cement, concrete, and glass see modest negative impacts, these are offset by the positive impacts of increased LNG production and investment by the natural gas sector.